Wells Fargo Bank buys Wachovia Corporation through Merger Stock Prices Soaring

We discussed about how Citibank would take over Wachovia Bank last week, but it seems the whole picture has suddenly changed with Wells Fargo Bank back with the merger talks with Wachovia Corportation has managed to suceed with the Merger.

Wells Fargo and Wachovia agreed to merge, in a transaction requiring no financial assistance from the government, the two banks said on Friday. This means there will be no funds involved from FED or governmental bodies for this merger.

Citibank has totally lost this bid and that means, they have seriously lost out on a great asset position in the market. Citibank Wachovia Deal was a transaction supervised by the Federal Deposit Insurance Corporation (FDIC) that included assistance from the government.

I think it was a really smart move by Wachovia to merge with Wells FargoBank, obviously unsolicited, bid. This was in the best interest of the shareholders. Don't be surprised to see Wachovia Bank share prices rose to new high today on NYSE and stock markets overall.

Under the Merger agreement, Wells Fargo will acquire all outstanding shares of common stock of Wachovia in a stock-for-stock transaction, the banks said in a statement. Wells Fargo will acquire all of Wachovia Corporation, including its preferred equity and indebtedness, and all its banking deposits.

Wachovia shares were up 64 percent to $6.42 before the bell. Wachovia Futures rose after the news and will continue to rise through today. Wachovia shareholders will receive 0.1991 share of Wells Fargo common stock in exchange for each share of Wachovia common stock.

Wells Fargo said it expects to incur merger and integration charges of approximately $10 billion and it plans to issue up to $20 billion of new Wells Fargo securities, primarily common stock.

If you hold any Wachovia Stock, try to sell during the merger news, you are more than likely to make handsome profits.